Yara North America reported on Oct. 6 that it has received the first dry bulk cargo of urea at its new terminal in West Sacramento, Calif. The company said outbound urea shipments at the facility are scheduled to start on Oct. 12, while liquid UAN service at the site has been in operation since March 2016.
Yara acquired the West Sacramento facility in December 2015 from Agrium Inc. for $27 million (GM Dec. 7, 2015), and has invested an additional US$4.5 million to convert the former UAN production site into a “state-of-the-art” import terminal for finished products. Yara said the West Sacramento terminal will be a major hub for the California and Pacific Northwest markets and complements the company’s existing California assets, which include terminals at Stockton, San Diego, and Port Hueneme.
“We are very happy to see the progress made at this site, which fully complies with Yara’s high standards of safety and efficiency, while strengthening our commitment to the growers and retailers in this very important agricultural market,” said Steve Rodgers, acting president of Yara North America.
Yara said it has achieved “significant synergies” in operations, logistics, and market coverage since integrating the West Sacramento facility into its North American business. At the time of the acquisition last December, Yara said the terminal would provide greater market access while also increasing the company’s storage capacity, improving customer service, reducing truck transit times, conserving fuel, and enhancing overall logistical efficiencies.
The West Sacramento site has already been audited by ResponsibleAg (GM Sept. 9, p. 14), with certification expected to be issued by the end of 2016. Yara said it is committed to having all its North American facilities enrolled and compliant under ResponsibleAg.
Yara’s presence in Sacramento marks a return of the company to that location. Yara let its original lease at Sacramento lapse in 2009 after it completed a major $21 million upgrade at the Port of Stockton (GM Feb. 25, 2008), where it added approximately 80,000 mt of dry storage to an existing liquid capacity of 125,000 mt.
Prior to Yara’s acquisition of the facility, Agrium had used the West Sacramento site to produce UAN before announcing in April 2015 (GM April 27, 2015) that it intended to sell the site and exit the local UAN market, although it retains a nitrogen fertilizer plant in Kennewick, Wash. Agrium acquired the West Sacramento site in 2000 with the purchase of the fertilizer assets of Unocal Corp. (GM Oct. 9, 2000).